Union Bank plans quarterly capped return CDs linked to Russell 2000

By Toni Weeks

San Diego, June 29 - Union Bank, NA plans to price market-linked certificates of deposit due Jan. 28, 2015 with quarterly capped return linked to the Russell 2000 index, according to a disclosure supplement.

The payout maturity will be par plus the indexed interest amount, subject to a maximum return of 49% to 63% that will be set at pricing and a minimum return of 1.75%.

The indexed interest amount is the sum of the 14 quarterly percentage changes multiplied by the principal amount on the maturity date. Each quarterly percentage change is subject to a cap of 3.5% to 4.5%, but there is no floor if the change for a quarter is negative. The actual cap will be set at pricing.

The CDs are callable at par on the 15th of each March, June, September and December beginning June 15, 2012.

The CDs (Cusip: 90521AGG7) are expected to price July 25 and settle July 28.

UnionBanc Investment Services, LLC is the agent. Advisors Asset Management, Inc. and Incapital LLC are the distributors.

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